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Evaluation

Cloze Activity

Fill in the missing gaps appropriately.

Q1. refers to the tendency by an individual to hold onto money instead of spending it.

Q2. What is the the term that can be used in place of liquidity preference? .

Q3. The situation where one holds money with a motive of meeting daily expenses is called .

Q4. The situation where people tend to hold money to meet expenses that might occur unexpectedly is referred to as .

Q5. The motive behind holding money to be used in the future when people anticipate that the prices of goods and services will be lower that they are presently is referred to as .

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is the quantity of a commodity that suppliers are willing and able to bring to the market for selling at a particular price over a given period of time. refers to the stock of monetary items that are in circulation in an economy at a particular point of time. The deposits by individuals and firms in that are withdrawable on demand are called total demand deposits. The monetary items in circulation in an economy consists of and The total currency issued by the Central Bank include and

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SCORM Quiz

Question

The desire to keep money instead of other assets depends on the following motives except.

Answers

Business motive

Transaction motive

Precautionary motive

Speculative motive

Question

The following factors determine the amount of money held for transaction motive. Which is the odd one out?

Answers

Individual's level of income.

Individual's spending habits.

Individual's age.

Price of commodities.

Availability of credit.

Question

The following factors influence the amount of money to be held for precautionary motive. Which one is not?

Answers

Individual's level of income.

Individual's temperaments.

Family status.

Spending habits.

Number of dependants.

Question

The following factors influence both transaction and precautionary motives. Which one does not?

Answers

Duration between incomes.

Price of commodities.

Duration between incomes.

Question

The following factors do not influence the amount of money held for speculative motive. Which one does?

Answers

Number of dependants.

Duration between incomes.

Individual's age.

Individual's temperaments.

Spending habits.

Availability of credit.

Question

The following statements describe supply of money.Which one doesn't?

Answers

Deposits of individuals and firms are withdrawable on demand.

The total currency in circulation in an economy is issued by commercial banks.

An increase in money supply can be as a result of increased credit by commercial banks.

Money supply is the stock of total currency and total demand deposits that are in circulation in an economy.

Question

The following determine the amount of money held for speculative motive except...

Answers

Duration between incomes.

Level of income.

Individual's optimism.

Individual's pessimism.

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